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Most folk won’t remember who Ken Shirley was, prior to his current ‘gig’ as CEO of the Road Transport Forum (RTF), representing road transport interests since July 2010.

From 1984 to 1990, Shirley was nominally a Labour Party MP. He was closely aligned with the likes of Roger Douglas, Richard Prebble, and other right-wingers who had seized control of the party during the 1980s.

From 1996 to 2005, Shirley was an ACT Party MP. As such, he was an acolyte of the neo-liberal school of economics and a strong adherent of free market forces. Part of ACT’s policies is to scrap the minimum wage.

Indeed, to under-score ACT’s abhorrence of the minimum wage, ACT’s current leader (and sole MP), David Seymour, condemned a recent rise in minimum wage levels. On 26 February this year, Seymour was scathing;

“The new $15.25 minimum wage will hit regional employers especially hard… In Auckland, $15.25 might not sound like much, but small businesses in the regions who generally charge less will struggle to bear the cost. Hikes to the minimum wage will discourage new employment, and lead to more lay-offs and business failures.

The first employees to suffer will be young, low-skilled workers who won’t be offered a chance to prove their worth. Pulling up the jobs ladder will only add to poverty in low-income areas.

This is a wage set for the distorted Auckland economy. Why should the rest of the country have to bear the same costs?”

[Fun Fact: As a Parliamentary Under-Secretary, Seymour is currently a taxpayer-funded beneficiary on a salary of $185,098 p.a. – which equates to nearly $89 per hour. One wonders if “small businesses in the regions who generally charge less will struggle to bear the cost” of Seymour’s salary?]

But returning to Ken Shirley; as an ex-ACT member of Parliament he is still most likely an advocate for the abolition of the minimum wage.

“Ken Shirley of the Road Transport Forum discusses what’s behind logging truck crashes and what needs to be done.”

At one point in the discussion, a suggestion was made that low wages in the trucking industry is not attracting the most highly-skilled and experienced workers;

@ 7.50

Jim Mora: “How bad do you think, Ken, is this situation with truck driving?”

Ken Shirley: “Oh, the spate we’ve had in Northland is just unacceptable. There’s no excuse for roll-over[s]. We know we have some difficult roads in New Zealand with topography, Northland’s is particularly difficult.

But there’s an obligation on the drivers and the forestry companies who hire the drivers to make sure they drive to the conditions. That’s the obligation on all drivers, and the spate we’ve had is just unacceptable, and I think inevitably it seems it’s not mechanical failure, it is driver error.

Whether it’s speed, inattention, or fatigue.”

Jim Mora: “So, it’s a…what, is it a hiring of drivers problem, hiring the wrong drivers, or is it a keeping-costs down problem, Ken? What do you think?”

Ken Shirley: “Well, the two are related of course. We have a chronic shortage of H5 drivers in New Zealand. That’s the heavy combination driver, the truck and trailer. It’s a global problem, but it’s particularly severe in New Zealand at this time. We’ve had it for many years, but with the activity in the economy now, that we are currently having, there is a chronic shortage of drivers.

Many of our members throughout the country are just saying they simply cannot get drivers. And I guess inevitably, you can, in that situation, such a tight situation, out of desperation, you can perhaps hire someone who’s not as skilled as you would like or need, out of sheer necessity. But at the end of the day, there’s no excuse. This should not be happening. We’re taking it very seriously.

We’ve actually instigated a series of roll-over prevention seminars in conjunction with NZTA around the country. They started some six weeks back. And these are actually very good seminars. But we have to educate the drivers, the loaders, the dispatchers, the transport operators themselves, but we must not have this level of roll-over.”

Jim Mora: “Ken, is it the… what is it deep down? Is it the meager wages paid, as some people are saying? You’re just not attracting the skills to the industry?”

Ken Shirley: “Ah, no, you do, it’s, you know, you can have a driver error. But it’s, it’s… you have to have better training, better awareness, that has to be the answer.”

Jim Mora: “So, there was this work-force development strategy, wasn’t there, ah, put into place a wee while back to try and try to entice more people to become truck drivers because of that shortage. But what is the point of a work-force development strategy if we know what the problem basically is, which I’m interpreting as maybe a lack of training and a lack of procedures put in place in the industry – [garbled].”

After a further exchange between Jim More, Peter Elliot (one of the panelists), and Ken Shirley, the host returned the discussion to the matter of wage rates;

Jim Mora: “It does seem though, with the wage rates that we see talked about, that you might not be getting the optimum recruits for the job? Is that a fair criticism, or not?”

Ken Shirley: “Well we know that the skilled labour market across the economy, whether it’s a diesel mechanic, a skilled driver, all of of those industries are, are, reporting severe chronic shortages. And because they are so highly skilled, reliant on a high level of, of, of, experience, when there is a chronic shortage, there is a temptation to often, out of desperation [to] take what you can get. And, and, that’s, that’s when you start to get into issues that like we are seeing and that’s when you start introducing potential road safety problems.”

Ken Shirley: “Well, indeed, and all the members I speak to want to, but there’s been a race to the bottom, it’s –

[panelist scoffing (?) noise]

… such a fiercely competive industry…”

Shirley’s admissions are astounding.

His comments appear to be a frank admission that the free market has experienced a spectacular failure on a key point in the Northland logging industry; that if there is a shortage of skilled labour, the price of that labour (heavy-truck drivers in this case) should rise – not fall – to attract skilled labour. That is a basic tenet of supply and demand in the free market system.

“But when workers get higher wages and better working conditions through the free market, when they get raises by firm[s] competing with one another for the best workers, by workers competing with one another for the best jobs, those higher wages are at nobody’s expense. “

Assuming there are a large number of employers in a region, or that workers are highly mobile geographically, the wages that a company will pay workers is dependent on the competitive market wage for a given skill set. This means that any company is a wage taker, which is simply another way of saying companies must pay competitive wages in order to obtain workers.

None of which seems to be happening in Northland at present.

To the contrary, logging companies – according to their own spokesperson, Ken Shirley – are engaged in a “a race to the bottom” with drivers’ wages.

“The link between remuneration and road safety is highly questionable and as a recent PWC report highlights, the system will result in a net cost to the Australian economy of more than A$2 billion over 15 years.

It is therefore very concerning that the Labour Party here advocated for the same policy and campaigned on it during the last election.”

National awards and government-imposed orders are not the way to lift industry wage rates or make the industry safer. All they do is saddle the industry with inflexible and time-consuming obligations and additional costs.

Let’s not repeat Australia’s mistake in New Zealand. It has been proven that national awards burden the economy and cost jobs and I hope that Labour and other political parties here will accept that reality and ditch the concept once and for all.”

Shirley’s comments last month are in stark contrast to his public lamentations on Radio NZ.

Not only has the free market failed in one of it’s key tenets – but Shirley is actively opposed to raising wages by any means necessary, to attract skilled, experienced truck drivers.

This should serve as a clear lesson that the innate contradictions of the free market ideology – many of which are little more than articles of faith – will eventually become more and more apparent.

Shirley has inadvertently helped with the slow dismantling of the neo-liberal fantasy.

Appendix1

Unfortunately, knowing how the system operates in this country, it will takes catastrophic events with several tragic deaths, before the government acts on this growing problem.

Cronywatch*…

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…Keeping an eye on dodgy government appointees, crony-by-crony!

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In this on-going Thread, I will be reporting on blatant political cronyism from this current government. Considering that the NBR ceased their version of “Cronywatch” in late 2008, I thought it would be helpful if folks knew what John Key and his government were up to.

Cronyism is when appointments to various quangos, Boards, organisations, departments, and even unofficial positions, are made for no other apparent reason than their membership, or close affialiation to, the National government. Governments do this for various reasons; to keep on eye on things; to try to influence decision-making; to ensure that their policies are carried out according to their agenda; and perhaps even a bit of ‘pay back‘.

This sort of thing was/is verey commonplace under authoritarian regimes where democracy and an independent civil service are alien concepts. So it is more than a little disturbing when we find such occurrences here, in little old Godzone.

So every time I find a political appointee, I’ll report it here. With each up-date added to this Thread, I’ll ‘bump‘ it back up to the top of Recent Posts.

Despite having zero experience in the education sector, Ms Isaac was appointed by ACT MP, John “I-Don’t-Know-I-Can’t-Recall” Banks to chair the Charter School Working Group. Ms Isaac’s only tenuous links to educatuion is that she has served on a School Board. (In which case, I look forward to serving on a DHB and thereafter beginning a practice in brain surgery…)

As most folk know, Charter Schools is an ACT policy. Ms Isaac was appointed by ACT MP, John “What-helicopter-flights?” Banks. And Ms Isaac is an ACT Party member, ex-candidate, and President.

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Belinda Milnes

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“Social Development Minister Paula Bennett has appointed a former official from her own office to the board of the Families Commission.

Belinda Milnes, a former senior policy adviser for Mrs Bennett, has been appointed to the commission for three years.

The minister has been unavailable to discuss the appointment, but in a statement says Ms Milnes understands social policy and is the best person for the job.”

Interestingly, Paula Bennett made no mention of Ms Milnes’ connection with her office when she released this media statement,

” Social Development Minister Paula Bennett today announced two new appointments to the Families Commission.

Sir Peter Gluckman and Belinda Milnes have been appointed to the Board of the Families Commission for a period of three years.

The Families Commission is currently undergoing a restructure to assume its new role providing independent monitoring, evaluation and research.

“We’ve appointed the best people for the job to oversee a major change programme within the Families Commission,” says Mrs Bennett.

The Government is reprioritising a minimum of $14.2 million of the $32.48 million funding the Families Commission receives over four years to set up a new Social Policy Evaluation and Research Unit (SuPERU).

“This unit will provide research and best practise advice to government and non-government organisations,” says Mrs Bennett.

This unit will independently monitor and evaluate programmes and initiatives in the social sector, a job currently done largely by Government Departments.

“I believe giving this role to an independent body will see more community organisations entering into robust evaluation and monitoring”. “

I wonder how much ” independent monitoring, evaluation and research” will be produced by the new “Social Policy Evaluation and Research Unit ” when it is staffed by National Party appointees who have been functionaries within a Minister’s office?

At least the Minister will hear only what she wants to hear, with no pesky dissenting opinions upsetting her day…

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Richard Long

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“Former National Party chief of staff Richard Long has been appointed to the board of TVNZ.

[…] He spent two years as chief of staff for National leaders Bill English and Don Brash after leaving the Dominion in 2002.”

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Katherine Rich (#2)

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(L-R) National MPs Simon Powell, Katherine Rich, former National leader Don Brash, National MPs Nathan Guy and Gerry Brownlee applaud John Key as he delivers his speech as the New Zealand National Party launch their election campaign at Sky City on October 12, 2008 in Auckland, New Zealand.

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The latest cronyist-appointment is (again) former National MP and CEO of the Food and Grocery Council, Katherine Rich, to the newly formed Health Promotion Agency.

The Council represents a $15 billion food and beverage industry and exerts considerable influence on food legislation and trade practices.

The Council was a vocal opponant, and campaigned against, mandatory inclusion of vitamin B9 (folic acid) in bread (to prevent crippling birth defects such as spina bifida) and anti-obesity proposals such as taxing sugar. It supports liberal trading policies for alcohol.

The Health Promotion Agency incorporates the Alcohol Advisory Council of New Zealand (ALAC), the Health Sponsorship Council and other promotion work by the Ministry of Health.

ALAC was an organisation tasked with addressing the growing incidence of alcohol abuse in this country. This increasingly destructive social problem has been calculated to be a $4 billion-plus crisis in our society, wasting valuable health, police, judicial, and ACC resources, and impacting on employment and family life.

It therefore seems somewhat incongruous to appoint a person who in deeply involved in the alcohol industry in a government body that has a role in identifying and addressing alcohol problems in our society.

In fact, one could see this as a conflict of interest. John Key’s bland assurances therefore sound rather hollow,

“I’m comfortable that she’ll be able to manage any conflict….It’s important that a board has a range of different views.” – Source

Key’s views on the Food and Grocery Council’s emotion-laden campaign against folic acid was no less derisable,

“The debate wasn’t around whether folic acid might or might not work. It was about people’s rights to have that put in every piece of bread. There’s quite a difference there.”

Unfortunately, Mr Key fails to realise that foetuses deprived of this critical vitamin B9; are born with spina bifida; and spend their entire (shortened) lives in a wheelchair, have no such “rights” to choose. Foetuses rely on adults to consume appropriate foods and beverages.

Way to go, Mr Key. The manipulation of public opinion on this issue by the Food and Grocery Council was predicated on saving money for the food industry.

But it’s taxpayers who have to pick up the medical and welfare tab for people with neural tube defects (spina bifida).

That, plus the Food and Grocery Council’s staunch advocacy for the proliferation of alcohol retailing, makes Ms Rich wholly inappropriate for this new government body.

Ms Rich has neo-liberal views on the production and retailing of alcohol,

Alac chief executive Gerard Vaughan said it set out a clear objective of reducing alcohol-related harm which stretched to structure and role changes for the district licensing agencies responsible for managing liquor licensing in their own communities.

Communities up and down the country were sick of the violence and vandalism that came with drinking and that proposed changes to licencing regimes would help address the problem, Mr Vaughan said.

Nearly 3000 submissions were received by the commission, many of which supported the tightening of laws around alcohol sales, purchasing and consumption.

But NZ Food and Grocery Council chief executive Katherine Rich said the report reflected “classic nanny state thinking.”

It failed to target those causing the problems and punished everyone, she said. The industry was already one of the most regulated, and more sensible ways to approach existing problems included better enforcement of current rules and better use of legal powers, along with industry-led initiatives.” Source

Final word to someone more concerned with social issues (rather than profits),

“ Professor Sellman says supermarkets normalise alcohol as an ordinary commodity and sell it by the tonne at ultra-cheap prices up to 24 hours a day.

He believes Ms Rich’s appointment is a major conflict of interest and indicates the Government wants to have the alcohol industry strongly represented in its preparations for the new agency.

“Seventy percent of the alcohol that’s sold in New Zealand comes through supermarkets and here we have a person in Katherine Rich who’s a staunch defender of the excessive commercialisation of alcohol, particularly though supermarkets, and she’s on a board that is presumably about decreasing the heavy drinking culture”. “ – Source, Radio NZ

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Roger Sowry

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Roger Sowry has been a National Party MP from 1990 to 2005 – five consecutive terms. The first two terms were as MP for Kapiti, the latter three as a Party List MP. He became Chief Executive of Arthritis New Zealand, and then worked at Saunders Unsworth,as a “consultant on Government matters” (ie; lobbyist).

Party positions held:

National MP 1990 – 2005

1993, appointed Junior Party Whip

1995, appointed Senior Party Whip

1996, appointed Minister for Social Welfare

1998, appointed Minister of Social Services, Work and Income; Minister in charge of War Pensions; Minister responsible for the Housing Corporation; and Associate Minister of Health

Appointed Deputy Leader of National Government from October 2001 to October 2003

“Prime Minister John Key said he would not describe Mr Sowry as a party hack and he was qualified for the job. “We are not going to preclude people solely because they’ve been involved with the National Party. If we were to do that then the talent pool is going to be substantially reduced,” Mr Key said. – Source

The appoint was made by the Minister – without being interviewed, as is the usual process,

““It is the chair’s view that without interviews by an appropriately selected interview panel, the process will not provide an opportunity to properly assess the candidates suitability,” advice to Power in July last year said.

“The required skills cannot be evaluated without interview. He [Mr Hindle] has also expressed concern that the suggested appointment of member without interview would be at odds with the practice of past years“.” – Source

Which was unfortunate, as Neeson has a shocking record for anti-gay/lesbian beliefs that can only be described as homophobic. He consistently voted against including gays/lesbians in protective Human Rights legislation and voted against legislation to outlaw employment discrimination based on gender. (See ” National’s version of ‘human rights’ ” at Tumeke, for full details.)

It is difficult to understand how someone of Mr Neeson’s beliefs can contribute to human rights issues in NZ, unless his appointment is specifically designed to curtail human rights for women and minority groups?

“Graduation day at Te Wananga. Soon after the Labour Government came to office it started showering money on all things Maori. ” – NZ Herald

“Soon after the Labour Government came to office, ushering in its flagship ‘Closing the Gaps’ programmes. It started showering money on all things Maori. ” – Ibid

“Out of this Te Wananga o Aotearoa pocketed $5.8 million and said that would go a long way towards providing for its growth. ” – Ibid

“But the Government went further. Closing the Gaps demanded even more taxpayer money be thrown at Maori. ” – Ibid

“Despite its apparent concern, it has continued to shovel huge sums of taxpayer money to this institution – all in the name of the treaty. ” – Ibid

“The Treaty of Waitangi Fisheries Commissioners have foreshadowed that the decision to allow the Maori Land Court to hear iwi claims to the foreshore and seabed of the Marlborough Sounds opens the way for similar claims around the country” ACT New Zealand Deputy Leader Ken Shirley said today.

“I am again calling on the Labour Government to act decisively. It must spell out the bounds to claims – in order to prevent undue anxiety for tens of thousands of New Zealanders, and to ensure that iwi don’t waste any more time and money pursuing claims that should be off limits.” – Ibid

Hopefully Mr Shirley’s anti-Treaty and knee-jerk anti-Maori beliefs will not be carried over to the Human Rights Review Tribunal.

“The Law Commission is an independent Crown entity under the Crown Entities Act 2004. It is funded by government and reviews areas of the law that need updating, reforming or developing. It makes recommendations to Parliament, and these recommendations are published in our report series. The Law Commission helps to maintain the quality of New Zealand law to meet the current and future needs of our rapidly changing society. The Commission’s objective is to improve the quality, relevance and effectiveness of New Zealand law, by informing and supporting discussion on and making recommendations to Parliament for law reform.” – Source

I suspect that the Law Commission may have just become a somewhat less “independent Crown entity “.

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Some weeks ago, a furore erupted when NZ on Air boardmember, Stephen McElrea, complained about the broadscasting of a document on TV3, just four days before the Elections last year.

The documentary was a highly critical look at growing child poverty in this country.

The timing of the documentary’s broadcasting was criticised by Stephen McElrea, who complained that it was highly politicised and could impact of NZ on Air’s “impartiality”. There were suggestion made that NZ on Air should have authority over when programme should be broadcast.

Some weeks ago, a furore erupted when NZ on Air boardmember, Stephen McElrea, complained about the broadscasting of a document on TV3, just four days before the Elections last year.

The documentary was a highly critical look at growing child poverty in this country.

The timing of the documentary’s broadcasting was criticised by Stephen McElrea, who complained that it was highly politicised and could impact of NZ on Air’s “impartiality”. There were suggestion made that NZ on Air should have authority over when programme should be broadcast.

***Update***

It appears that Stephen McElrea was part of a working group that has committed NZ on Air funding to a “documentary” on Whanau Ora.

Whanau Ora is a government department created under the National-Maori Party Coalition arrangement after the 2008 General Election.

NZ On Air states that the “documentary” will look at “how successful this new initiative will be in assisting NZ’s most deprived families” and that it would be “a behind the scenes look at the roll out of this new initiative that seeks to deliver positive social outcomes for Maori“.

It is somewhat difficult to see how a documentary could determine that Whanau Ora can be a “successful… new initiative … in assisting NZ’s most deprived families” when it is still barely operating. There have been no assessments or measured outcomes yet (to my knowledge) that would merit a “documentary” on Whanau Ora’s “success” or otherwise.

The fact that Stephen McElrea was a participant in the decision-making process to fund this “documentary/propaganda” is clear evidence that NZ On Air‘s independence has been compromised.

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Catherine Isaac

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An announcement was made on 1 February that ACT member; former ACT Party List candidate, and former ACT Party President, Catherine Isaac, had been appointed to oversee the introduction of the government’s Charter Schools programme in South Auckland and Christchurch. Ms Isaacs has no formal experience in the education field.

John Banks defended Isaac’s appointment was stating that she has sat of a School Board of Trustees for six years.

In which case, if I sat on a District Health board for a similar period of time, would that qualify me to carry out thoracic open-heart surgery? Well, I guess that would be one way to “train” our doctors on the cheap and get rid of that pesky, expensive Med School in Dunedin.

It seems abundantly obvious that Isaac’s appointment is to ensure that ACT’s Charter School policy is implemented without usual critical oversight, and to further ensure that results are presented in a “positive light” to the public.

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Katherine Rich (#1)

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(L-R) National MPs Simon Powell, Katherine Rich, former National leader Don Brash, National MPs Nathan Guy and Gerry Brownlee applaud John Key as he delivers his speech as the New Zealand National Party launch their election campaign at Sky City on October 12, 2008 in Auckland, New Zealand.

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“The National-led Government is defending its appointment of the Food and Grocery Council chief executive to a board which will set up a new health promotion agency.

Katherine Rich has been appointed to the Health Promotion Agency Establishment Board, which replaces the Alcohol Advisory Council.

The move has outraged advocacy group Alcohol Action. Spokesperson Doug Sellman says Ms Rich has been one of the most vociferous defenders of the alcohol industry.

Professor Sellman says supermarkets normalise alcohol as an ordinary commodity and sell it by the tonne at ultra-cheap prices up to 24 hours a day.

He believes Ms Rich’s appointment is a major conflict of interest and indicates the Government wants to have the alcohol industry strongly represented in its preparations for the new agency.

“Seventy percent of the alcohol that’s sold in New Zealand comes through supermarkets and here we have a person in Katherine Rich who’s a staunch defender of the excessive commercialisation of alcohol, particularly though supermarkets, and she’s on a board that is presumably about decreasing the heavy drinking culture.”

The Labour Party agrees the appointment of Katherine Rich is too much a conflict of interest.” – Source, Radio NZ

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The Radio NZ report does raise an important question regarding her appointment to the Health Promotion Agency Establishment Board, which replaces the Alcohol Advisory Council.

A 2009 BERL report estimated that “$4.437 million of diverted resources and lost welfare” could be directly attributed to alcohol abuse. That $4.4 billion is reflected in ACC, hospital admissions, crime, family violence, lost productivity, etc, and places a firm dollar cost on the harm that alcohol abuse is causing NZ society. These are costs we all pay for through ACC levies and taxes spent on medical intervention; policing; and the justice system.

Whilst working for the Food and Grocery Council, Ms Rich was a firm advocate of liberal laws surrounding marketting and retailing of alcohol,

Alac chief executive Gerard Vaughan said it set out a clear objective of reducing alcohol-related harm which stretched to structure and role changes for the district licensing agencies responsible for managing liquor licensing in their own communities.

Communities up and down the country were sick of the violence and vandalism that came with drinking and that proposed changes to licencing regimes would help address the problem, Mr Vaughan said.

Nearly 3000 submissions were received by the commission, many of which supported the tightening of laws around alcohol sales, purchasing and consumption.

But NZ Food and Grocery Council chief executive Katherine Rich said the report reflected “classic nanny state thinking.”

It failed to target those causing the problems and punished everyone, she said. The industry was already one of the most regulated, and more sensible ways to approach existing problems included better enforcement of current rules and better use of legal powers, along with industry-led initiatives.” Source

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New Zealand has a $4 billion-plus problem with alcohol abuse (BERL report) and Katherine Rich dismissed attempts to address this crisis as “classic nanny state thinking“?

It is worthwhile reflecting that since liquor laws were de-regulated in the mid 1980s (as part of the wave of Rogernomics “reforms”), that 25 years later things have gotten steadily worse.

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Though the State Services Commissioner did find that they were satisfied with English’s appointment, one has to question why the position was not publicly advertised, as is common practice?

Even if the SSC is satisfied of no inappropriateness, this brings up a valid point; how can we differentiate between blatant political appointees and those made on merit, if the entire system is brought into disrepute? Public perception is growing that this government is stacking various organisation Boards with party apparatchiks – and judging by recent events, that perception is not misplaced.